RRI.CO.ID, Jakarta - Selling pressure on US government bonds has returned, pushing the 10-year Treasury yield up to 4.961%. The US Treasury Department limited its long-term debt buyback operation to $6 billion, but this failed to reduce the selling pressure.
The US Treasury reportedly bought only $5.19 billion of the bonds. The figure was much lower than the total bids submitted, which reached around $10 billion.
Meanwhile, the US Dollar Index weakened to 99.09. Movements in the US bond market could put more pressure on the Indonesian rupiah, which fell to 17.585 against the US dollar in early trading.
The rupiah and the Jakarta Composite Index, or IHSG, are also facing pressure from higher global oil prices. During Asian trading, Brent crude oil rose to around $108 per barrel.
A White House adviser said the war with Iran could continue for several years, possibly until 2029. This situation has increased concerns about global oil supplies and could keep oil prices high.
Asian stock markets opened lower as investors reacted to these pressures. The IHSG also continued its decline, opening at around 6,552.
The IHSG and rupiah remain vulnerable to further downside in Asian financial markets. The situation is also difficult to predict because of the sharp rise in global oil prices.
Gold prices also fell sharply as investors became more worried about future inflation. Gold was trading at around $4,321 per troy ounce, or about IDR 2.48 million per gram.
Higher oil prices are reducing expectations for accommodative monetary policy. At the same time, expectations of higher interest rates are returning, which could put further pressure on gold prices.
Writer: Gunawan Benjamin (Economist, UISU)
News Recomendation
Loading latest news.....